ESCONDIDO: Rush of new merchants bolstering downtown Escondido

Nearly a dozen merchants have recently chosen to open new shops
or restaurants on Escondido's Grand Avenue, helping the city's
downtown district recover from a rash of vacancies that began four
years ago when the economy faltered.

There's great variety among the new businesses, which include
two restaurants, a tea room, a candy store, an eclectic boutique, a
bike shop, a bank, a baby boutique and a showroom focused on
upgrading residential garages.

In interviews, downtown merchants and city officials said the
rush of new businesses was probably the result of multiple factors,
including lower rents, relaxed parking restrictions and aspiring
entrepreneurs sick of waiting for the economy to recover.

"I'd love to say it's because of efforts by the DBA (Downtown
Business Association) or the city, but I think it's more just a
function of people deciding to move forward instead of being
cautious," said DBA president Shawna Cruise, who owns The Loft Hair
Design on Grand. "People are over just sitting at home."

That description applies to Karen Delgadillo, who opened the
Knitten Kitten Baby Boutique May 1 at Grand and Kalmia.

"I opened this place because I really believe we're not getting
out of this recession until people start taking risks," said
Delgadillo, an Escondido resident who operated a similar boutique
in Rancho Bernardo a decade ago.

Delgadillo said she was also attracted to Escondido's quaint and
historical downtown, where many of the buildings date back more
than 50 years, and the foot traffic such an ambiance attracts.

"This is the hub of everything in Escondido," she said.

One block west near Grand and Broadway, Richard Moran said he
opened Swirlz Candy & Party Emporium three weeks ago because of
the pedestrian traffic on Grand.

Moran said his fear of the economy was minimal because he
successfully opened his first Swirlz shop in Fallbrook three years
ago, when the economy was even worse.

Councilwoman Marie Waldron, who owns a downtown T-shirt shop,
said another cause of the rush might be the city's recent focus on
downtown, where parking restrictions were dramatically curtailed
this spring so shoppers don't have to keep an eye on their watches.
In addition, the city has eliminated or reduced many fees charged
to new merchants.

But Waldron and Cruise said the absence of parking restrictions
has also created some problems, primarily congestion in some of the
seven municipal lots the city operates downtown. They suggested
that some restrictions might need to be restored now that more
stores and restaurants are opening.

Councilwoman Olga Diaz, a member of the council's downtown
parking subcommittee and the primary force behind eliminating the
restrictions, said she's also heard complaints. But Diaz said she
wants to make sure they're coming from people who can't find spots,
not people frustrated they have to walk a little farther.

"I've also gotten lots of positive feedback," said Diaz. "But it
was only an experiment, and we may have to make some changes."

Diaz said she thinks lower rents offered by building owners on
Grand have played a key role in the rush of new businesses. She
suggested landlords have recently decided that some rent is better
than no rent, prompting them to offer cheaper leases.

Seven of the new businesses have already opened. Besides Swirlz
and the Knitten Kitten, they are The Rustic Sparrow, Grand Garage
Gear, California Avocado Grill, Bike Bling and Silvergate Bank.

And in the next few weeks, Air Feathers, the Grand Tea Room and
The Grand Place, an expanded and upgraded version of 150 Grand
restaurant, are slated to open.

Cruise, the DBA president, said the new arrivals leave only a
few conspicuous vacancies downtown, such as Saffron, H. Johnson
Furniture and the former site of Shiva gallery, next to Pounders.
There are also some vacancies on Grand closer to Palomar Medical
Center.